What’s the difference between a rollover and a transfer?

The most notable difference between transfers and rollovers is that you can only transfer money between two retirement accounts of the same type. For example, a traditional IRA can only be transferred to a traditional IRA, and an old 401(k) can only be transferred to a new 401(k). If you want to move money between two different types of retirement accounts, however -- including 401(k) to IRA -- that's called a rollover.

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